Maximizing Your Donation

Many Americans have been donating money to the relief effort in Haiti. But if you haven't yet, it's not too late to make the most of your contribution. Kelli Grant, Senior Consumer Reporter for SmartMoney.com, offers some tips on how to maximize your donated dollars.

First, watch out for scams. Don't offer up your cash to the first telemarketer to call, or people tabling for donations on the street. Con artists strike immediately after a tragedy, setting up fake web sites to mimic those of legit charities, and cold-calling consumers. Don't donate on the spot. And if you are online, make sure you're on the right web site before entering your credit card number.

Remember to stick to established groups. Even a legitimate but newly formed group isn't a great choice. Though well-meaning, it is unlikely to have the connections and processes that established charities do to get your money where it is most needed. Your best bet is a charity that already works in Haiti. Search for one through independent charity evaluators including the Better Business Bureau's Wise Giving Alliance, GuideStar and Charity Navigator.

It's also a good idea to assess the charity's plan. Read descriptions of a group's programs and efforts in Haiti. Look for specific numbers like meals distributed that point to its success. Also check figures on how much of your donation will go to programs and administrative costs. At least 75% should go to aid.

And don't forget to designate your gift. Normally, it's best to make a general donation to the charity and let them decide how to use it. But if the charity has several programs and you're sure you want your donation to go toward earthquake relief, note that preference on your mailed check or in the special instructions box for online donations.

And finally, give cash. Yes, the earthquake survivors do need clothing, food, potable water and other items. But sorting and transporting such goods is a logistical nightmare. Write a check, or make an online donation using your credit card. Issuers have said they will waive the fees normally taken out for charging a donation.

For more information on donating your money and other financial tips, click here.
by Jenn Eaker and Kelli Grant